Forex Today: Aussie cheers solid trade, UK PMI, BOE eyed

Broad based US dollar weakness emerged the main theme in Asia this session, as the Fed lefts the USD bulls largely unimpressed. The Fed maintained the status-quo and provided no hints on rate hike prospects in the upcoming FOMC meetings.

The Australian dollar was the top gainer across the fx space, bolstered by record high trade surplus, while the yen was the next best performer amid persisting risk-off market profile.

Later today, the UK construction PMI and ECB economic bulletin will keep the EUR, GBP traders busy ahead of the BOE policy decision and quarterly inflation report (QIR). While BOE Governor Carney’s speech will be also closely heard, in wake of the Article 50 trigger by March-end. From the US docket, we have the weekly jobless claims and a couple of second-liner data.

Main topics in Asia

Australia's trade balance surplus surges in Dec

Australia's trade balance came at a record +3.511bn vs expected AUD 2bn surplus. Imports came at 1% vs 0% prior, whie exports were 5% vs 8% last. 

NZ cattle TB update: OSPRI introduced measures to restrict animal movements

The NZ Herald carries more information on the latest reports of cases of cattle tuberculosis (TB) near the town of Matamata in New Zealand.

US President Trump blasted Aus PM Turnbull over a refugee agreement

Trump blasted Prime Minister Malcolm Turnbull over a refu­gee agreement and boasted about the magnitude of his Electoral College win.

Japan PM Abe – May intervene in FX during an emergency

Japanese PM Shinzo Abe, while speaking in the parliament, said the administration has never had to intervene in the FX markets during his tenure.

Key focus for the day ahead

EUR/USD looks to regain 1.0800 amid USD selling

Next on tap for the major remains the ECB economic bulletin, as the EUR docket remains data-light. While BOE decision will be closely eyed for any “rub-off “effect on the shared currency.

GBP/USD approaches 1.2700 ahead of BoE

GBP will take centre stage during the European afternoon in light of the BoE MPC meeting, the Quarterly Inflation Report and the subsequent speech by Governor M.Carney. 

US: Key Events ahead - Nomura

Analysts at Nomura take us through a series of economic events from the US docket lined up for release later in the NA session today.